On Oct 03, major Wall Street analysts update their ratings for $Nike (NKE.US)$, with price targets ranging from $96 to $120.
Goldman Sachs analyst Brooke Roach maintains with a buy rating, and adjusts the target price from $105 to $97.
BofA Securities analyst Lorraine Hutchinson maintains with a buy rating, and adjusts the target price from $104 to $100.
Evercore analyst Michael Binetti maintains with a buy rating, and adjusts the target price from $110 to $105.
Guggenheim analyst Robert Drbul maintains with a buy rating, and adjusts the target price from $115 to $110.
Baird analyst Jonathan Komp maintains with a buy rating, and maintains the target price at $110.
Furthermore, according to the comprehensive report, the opinions of $Nike (NKE.US)$'s main analysts recently are as follows:
The latest quarterly report from Nike has reinforced the perspective that the company's recovery process will be a prolonged one. It is suggested that the adjustment of fiscal 2025 guidance, which anticipates a potential high-single-digit decrease in second-half sales from previous estimates, underscores the extended journey and represents a further recalibration of expectations. It is argued that the current footwear market demands a higher level of creativity to sustain sales, and there has been a noticeable decline in Nike's narrative-driven marketing and innovation. There is a sense of optimism about the future contributions of the incoming CEO Elliott Hill.
The company's Q1 report reflected a 10% decline in revenues year-over-year, with the shortfall in traffic and unit sales being partially offset by higher selling prices. It has been indicated that the turnaround timeline for the company has been extended.
The recent lackluster performance report from Nike was anticipated, and the viewpoint suggests that a favorable buying opportunity may arise once there is clarity on the return to robust and enduring growth in sales and earnings. However, at present, the potential for decline remains substantial, while the possibility of an increase has also grown, suggesting a balanced risk/reward scenario. It is projected that Nike's sales growth might persist in underperforming, stemming from weaknesses in its primary product lines and the Chinese market. Additionally, Nike's profit margins could face greater pressure than foreseen due to elevated inventory levels.
Following Nike's report of Q1 EPS at 70c, surpassing forecasts, and a sales decrease of 10%, which met expectations, it's believed that the upcoming fundamental reset prior to the new CEO's tenure at the end of the month mitigates the risk of a sales shortfall and provides the incoming CEO with the leeway to apply his strategic plan.
The company's fiscal Q1 results revealed a shortfall in sales due to weakening trends in both direct-to-consumer and wholesale channels. However, this was balanced by better-than-expected gross margins and lower spending, which led to earnings surpassing expectations. Nonetheless, the quarter was considered 'low-quality' since inventory growth is now surpassing sales growth, and the guidance for Q2 fell short of the general consensus.
Here are the latest investment ratings and price targets for $Nike (NKE.US)$ from 9 analysts:
Note:
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